Oregon Court of Appeals rules against banks, MERS in foreclosure case


Oregon Court of Appeals rules against banks, MERS in foreclosure case

Oregon Court of Appeals rules against banks, MERS in foreclosure case

READ RULING: NIDAY vs GMAC, MERS | Oregon Appeals Court “Non Judicial foreclosures, Oregon Trust Deed Act., MERS has no right to be beneficiary”


The Oregon Court of Appeals struck a blow to the mortgage industry in Oregon today, ruling that its controversial document-registry system could not be used to skirt state recording law in out-of-court foreclosures.

In a decision with implications beyond the Mortgage Electronic Registration Systems Inc., the state’s second-highest court also held today that a lender must ensure a complete ownership history of the mortgage on file in county records before it can foreclose outside a courtroom.

MERS was created by the mortgage industry to make it easier to bundle and sell loans to investors without having to record every assignment with county clerks. It is involved in an estimated 60 percent of mortgages across the country.

But the court found that the Oregon Trust Deed Act requires the party who receives loan payments to publicly record all changes in mortgage ownership before starting a so-called nonjudicial foreclosure.


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One Response to “Oregon Court of Appeals rules against banks, MERS in foreclosure case”

  1. Charles Reed says:

    MERS has got problems and that is that in many cases like in Nebraska the registry company is not even register to do business ever as it never register with the NE Secretary of State.

    Now what they have done is acted like Wells Fargo Bank was the Lender with Washington Mutual Bank government loans assigning Wells the Deed of Trust as if they purchase the loans when in fact they did not because Ginnie Mae is suppose to be in possession of the Blank Notes that were relinquish in order for the bank to participate in the Ginnie Mae Mortgage Backed Securities (MBS).

    The Federal Government is in trouble because as Ginnie Mae does not buy any home mortgage loans because it cannot because it not authorized to originate, buy or sell and when caught submitting fraudulent documents to the court it had to admit that it was not the lien holder and that they were working for Ginnie Mae who they though was the lien holder. Now let not forcet that Wells has been servicing the loan since 2006 and the Washington Mutual Bank loan where in a separate building in a trust dept with the files identified as Ginnie Mae loans, and MERS has it on it system as Ginnie Mae as the “Investor” which is their term for owner.

    Now Ginnie Mae is caught in a trap were Washington Mutual is a defunct bank and MERS cannot represent a defunct bank as the bank cannot represent itself, but the bank long ago gave away right, title and any and all financial interest in the loan in two ways. First the bank signed a Blank Note and was to handed over to Ginnie Mae the Blank Notes and according to the UCC 3, ownership is whoever possesses the Blank Note but not the “holder in due course” meaning Ginnie Mae or about did not purchase the debt so thereby there is no debt due. Also there is a HUD 11711A that relinquish all the same to Ginnie Mae.

    Now in the crazes thing is when Ginnie Mae has the Lender do a MERS Transfer Beneficial Rights – Option 1, where a title transfer is suppose to take place but Ginnie Mae is not a member of MERS as a Lender and MERS could not represent Ginnie Mae as the sole nominee as the Beneficiary for the Lender. Ginnie Mae is not a Lender and does not purchase the debt so it has no right to call anything due!

    Now you have tons of foreclosures of our Troops President Obama keeps mentioning by Ginnie Mae who does not have the rights to foreclosed but they are illegally doing.

    This exposes a huge problem with Mortgage Backed Securities as Ginnie Mae MBS are worthless as they don’t have any underlying collateral!


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